Labor forecasting is the process of predicting future workforce needs based on various factors such as business growth, market trends, and economic conditions. This helps organizations determine how many employees they will need, what skills are required, and when to hire or train staff. By analyzing historical data and current labor market trends, companies can make informed decisions about staffing levels. Accurate labor forecasting can lead to improved efficiency, reduced costs, and better alignment of human resources with organizational goals, ultimately supporting business success and employee satisfaction.